ICICI Securities Ltd-Information Note

ICICI Securities Ltd-Information Note

by Nikita Bhoota Last Updated: Dec 15, 2022 - 01:16 am 179.5k Views

This document summarizes a few key points related to the issue and should not be treated as a comprehensive summary. Investors are requested to refer the Red Herring Prospectus for further details regarding the issue, the issuer company and the risk factors before taking any investment decision. Please note that investment in securities is subject to risks including loss of principal amount and past performance is not indicative of future performance. Nothing herein constitutes an offer of securities for sale in any jurisdiction where it is unlawful to do so.

This document is not intended to be an advertisement and does not constitute an invitation or form any part of any issue for sale or solicitation of an offer to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis for any contract or commitment whatsoever.

Issue Opens: March 22, 2018
Issue Closes:  March 26, 2018
Face Value- Rs 5
Public Issue: ~772.50 lakh shares
Price Band: Rs 519-520
ICICI Bank Shareholders Reservation: 5% of offer size
Issue Size: ~Rs 4,017cr
Bid Lot: 28 Equity shares       
Issue Type: 100% Book Building

% shareholding






Source: RHP

Company Background

ICICI Securities Ltd (ISec) is a leading technology based securities service firm in India that offers a wide range of financial services to retail and institutional clients. As per CRISIL, ISec has been the largest equity broker in India since FY2014 in terms of brokerage revenue and active customers in equities on the National Stock Exchange. As per 9MFY18 consolidated revenues, the principal businesses of the company involve: Broking and commission (90.1%), Advisory services (8.4%) and Investment & trading (1.5%). ISec has a pan India network of 200 own branches, ~2,600 ICICI Bank branches (through which ISec’s platform is marketed) and ~4,600 sub-brokers.

Offer Details

The offer consists of an Offer for Sale (OFS) of up to ~772.50 lakh equity shares.



Consolidated Rs Cr.





Revenue from operations





Growth (%) yoy










EBITDA margin (%)





Reported PAT





EPS ? Diluted (`)





RoNW (%)





Source: Company,5paisaresearch*9MFY18 figures are not annualized

Key Points

  1. As per CRISIL, in terms of brokerage revenue and active customers in in equities on the National Stock Exchange, ISec has been the largest equity broker in India since FY14. Retail customers accounted for 91.9%, 90.5% and 89.1% of the revenue from brokerage business in FY16, FY17 and 9MFY18 respectively. ICICIDirect, ISec’s electronic brokerage platform had ~3.9mn customers as on December 31, 2017. The electronic brokerage platform is backed by robust infrastructure and has processed ~1.9mn orders and trades in a day.
  2. ISec is the leading investment bank in the Indian equity capital markets by number of equity capital market issuances managed during the period April 1, 2012 to September 30, 2017 (CRISIL). The company’s equity capital markets services include management of public equity offerings, rights issues, share buybacks, tender offers, de-listings, and private equity placements. It also provides domestic and foreign institutional investors with cash equity and equity derivative brokerage services, corporate access and equity research.

Key Risk

Brokerage business constituted 65.6%, 62.6% and 63.6% share of the consolidated revenues in FY16, FY17 and 9MFY18 respectively. This segment depends on trading volume, which is significantly affected by external factors like general economic conditions, macro-economic & monetary policies and overall market conditions. Brokerage fee levels are primarily driven by competition, as there is constant pressure to lower the brokerage fee in the securities industry.      

Research Disclaimer

How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Bearer Cheque

Introduction A bearer cheque is an efficient and adaptable financial tool. It is a method of payment where the cheque is made out to the owner or bearer of the document. Bearer cheques enable the holder to cash or deposit the cheque without any requirement for identification or endorsement, in contrast to other cheques payable to a specific person or business.

  • Jun 06, 2023
Best Indicators for Intraday Trading

Introduction Intraday trading, also known as day trading, is a fast-paced trading strategy where traders aim to take advantage of short-term price fluctuations in financial markets. To succeed in this highly competitive arena, traders rely on various best indicators for intraday to make informed decisions and maximize their chances of profitability.

  • Jun 06, 2023
Nifty Outlook for 7 June 2023

Nifty started the day around 18600, but it witnessed selling pressure as the IT stocks corrected sharply and thus the benchmark index traded under pressure. However, the index recovered the losses from the lows towards the end and closed around the opening levels with a negligible loss.

  • Jun 06, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number